Brendan Blumer, the CEO of Block.one, has spoken again about the importance of the introduction of 1 token 1 vote mechanism for the selection of EOS Block Producers. He has proposed this solution before at the beginning of January but since nothing has changed in the voting system and the community is still trying to get rid of the cartel, figure out what strategy is best for BPs selection and what to do with inflation.
Brendan wrote on Twitter: “It’s my personal opinion that “1 token: 1 vote” is critical to the continued integrity of #EOS, by ensuring block producers remain aligned with the will of the community”.
How 1 Token 1 Vote Works
1 token 1 vote means that a token holder needs to vote for just one BP if they want to give them the full voting power. Voting for two BPs halves this voting power. With the current system, a BP can vote for 30 BPs, what this means is that they are voting for themself and the rest of 29 votes can be traded. The current mechanism “cements the unbreakable ring” which, according to Blumer, could be broken with 1 token 1 vote introduction.
Introducing cost to voting for more than one BP means that the vote trading dynamic would be gone. The premise is that it would align block production with token demographics. Without this mechanism EOS may soon arrive to a point of no return where top BPs acquire so much voting power that there won’t be a possibility to replace them.
This is also possible because the current 1% inflation is directed solely to BPs and there’s no counter force to this inflation. UBI introduction could add the balance and redistribute inflation to the token holders, but there’s no UBI proposal just yet.
“1 token 1 vote eliminates the ability for vote trading to cement cartels and allows one block producer to be replaced without having to breakup an entire cartel. Without this change, an incumbent cartel may eventually be unable to be replaced due to insurmountable voting power”
“If a whale voted for 2 people, each would receive 50% of their votes, this eliminates the vote trading method to secure a top BP position.”
Splitting the stake into 30 different accounts doesn’t change anything because “whether you use your entire stake to vote for 30 or split your stake into 30 votes, it’s is the same outcome” says the CEO of Block.one.
Current token holders that are already exercising 30 votes per token would be simply reverted to a single vote by implementing a change where “voting for 1 block producer is weighted 30x more heavily than voting for 30.”
It has been pointed out that Block.one could simply use their stake to make the desired changes happen, but Brendan sees that it wouldn’t come without controversy.
“Voting with a 9% block isn’t a simple decision that would come without controversy; I’m looking into more complex approaches that could diversify the voting of B1 tokens in line with the shareholder interest of the company, but no promises can be made at this time”
What 1 token 1 vote changes:
- Introduces free market pricing to block production
- Drives more value back to token holders
- Increases voter turnout
- Simplifies and incentivizes network engagement
- Eliminates vote swapping
- Lowers the barrier to vote by lowering the number of BPs to vote for
- BPs compete on cost basis
1 token 1 vote has undoubtedly many benefits, however, there’s not an actual proposal to be voted on in a referendum process and it is unlikely that BPs will decide to make this change by 15/21 approval.
Block.one organizes #B1June event in Washington DC. It will be available to watch in live stream.
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